PUTRAJAYA is considering a RM3 billion package to ease the cash flow of scandal-plagued Felda and help the more than 112,000 Malay families whose livelihoods depend on the land development scheme, reported The Straits Times.

The Felda white paper, due to be presented to Parliament in two weeks, will detail how the state agency accumulated billions in debts, apart from revealing the bailout plan.

Of the RM3 billion, some RM1 billion will serve as an immediate injection into Felda, which is short of RM2.8 billion to meet cashflow needs for this year and the next, said the report.

The agency will also try to restructure loans worth RM1.8 billion due this year, and RM10 billion from 2020 onwards, while the government could also extend further loans and guarantees to Felda.

“The government will pay off RM2 billion owed by settlers to Felda and allocate RM250 million to revive abandoned housing for their children. Many are unable to even service the interest,” said an official source.

Some 2.6 million Malays today have roots in the Felda schemes, which make up more than 900,000ha of land nationwide.

They form a massive voting bloc of more than 1.2 million people, or some 8% of total registered voters of 15 million.

In last May’s general election, Barisan Nasional lost the support of 27 constituencies with Felda plantations, which used to be strongholds of the former ruling coalition.

However, since winning the polls, Prime Minister Dr Mahathir Mohamad has struggled to retain Malay support, and this bailout will serve as part of his government’s efforts to regain the community’s trust.

The Straits Times also said that Pakatan Harapan will propose a new lease model in an attempt to optimise Felda’s 850,000ha of land, of which some 480,000ha belong to settlers.

The model would help settlers receive a steady income from the lease and a share of the profits, as well as new employment now that they have been freed from tending their land.

Felda is also set to appoint the Felda cooperative as the plantation manager, meaning there will also be dividend payments to settlers, said the report. – March 29, 2019.